413: The Aftermath of Neo-liberalism - Introduction

In  my previous lectures I have demonstrated that the present idea of a free market is a utopia, based on a Randian misconception of the human condition and human nature.

Besides that, the beliefs of neo-liberalism are based on a complete misconception of the ideas of Adam Smith and at this moment, due to all this narrow mindedness and wishful thinking, 

we face one of the biggest financial and economic crises in history. Resent history has been the clash of the systems: Communism versus Capitalism.

And while large crowds were cheering, the Berlin Wall fell on November 9, 1989. It became the symbol of the collapse of communism as a feasible social and economic system and the apparent victory of capitalism.

Now, about 25 years later, we must conclude that this was a Pyrrhus victory, that capitalism has not brought the solid and secure economy, which is beneficial to the common interest.

So, we have to face the question: "What next?" How should our world look like? Who owns what and how is it justified? How should the limited wealth of this earth be shared and distributed?

To give you a recent example…. The North Pole. Who in the world would be interested in that lump of ice except some scientists and adventurers?

But the situation has changed. To be honest, people smell  money there because of gas and oil. Suddenly maps are deployed, pencil and ruler at hand and states are confronted with the question: Who owns the North Pole and why?

So, What next? That is the question I want to investigate and analyze in this project. The first half will be an analysis of the questionable ethical characteristics and effects of the free market in our life.

The second half will deal with human nature, with the basic question, related to the idea "Greed is good". We have to answer the question what we really are.

Are we what Aristotle suggested, beings guided by virtues or like  Thomas Hobbes (….) thought: "Homo homini lupus", predators among predators, each one for himself?

In this context we love dichotomies and we have a number of them: are we basically egoistic or altruistic beings? Are we basically individualistic or social beings? 

Are we independent individuals, fighting for our autonomy or do we long for belonging to a group? Are we basically ratio or emotion driven?

In 1996 the pharmacists supplied about 80 million standard daily doses of antidepressants. In a period of 15 years this has increased with 230% ! 

Today 259 million SDD of antidepressants  are supplied. And here I am talking only about figures,which apply to the Netherlands only!

"We are all sickened by the current economic system. While produce, consume and enjoy are the holy trinity of the neoliberal belief,

 there comes just less valuable from our hands and we feel emptier, sadder and lonelier than ever.", to quote the Belgian professor of clinical psychotherapy. Paul Verhaeghe.

My desk is littered with newspaper clippings. All dealing with different aspects of the collapse of capitalism. Let me quote a banker, a VIP among Dutch bankers.

The headline of the article: "Ethics among bankers is hard to find." Subheading: "The banking industry has become an industry where you can do anything as long as there is no rule that forbids it."

According to George Möller (64), author of the book "Waardenloos (Without values)" (2012), it is about time that such condemnable attitude changes. 

The first economists such as Adam Smith, were economists with morality. In their form of free capitalism was assumed that the people were friendly virtuous and that it was the silent hand of God that eventually guided our actions.

They closed transactions in the confidence that  both parties involved benefited from then. That increased prosperity. 

In the second half of the 20th century, economics disguised itself in a cloud of mathematical models and assumed the attitude of being equal to natural science. 

People like Milton Friedman and Paul Samuelson built models for monetary gain. Transactions are concluded because they made money for you . That someone else is harmed - or even being ripped off - is not seen as immoral as long as it is not prohibited.

And this has led to our present situation. In many political debates we are no longer treated as human beings, but simply as costs. It's about time that we rethink our position.

The Discussion

[13:21] herman Bergson: Thank you ^_^

[13:22] Lizzy Pleides: Thank you Herman!

[13:22] Bejiita Imako: ㋡

[13:22] Kime Babenco: Thanks Professor Herman

[13:22] Umae Ying: shudder

[13:22] Qwark Allen: i`ve been seeing a lot of information about this bankers

[13:22] Qwark Allen: and seems they are the same ones since 19th century

[13:22] herman Bergson: Yes me too....

[13:22] Gemma Allen: ♥ LOL ♥

[13:22] Gemma Allen: i had a book to recommend to you but have to find it

[13:22] Bejiita Imako: I use to say, before in time the banks were for us, now we are for the banks and their fat wallets

[13:22] Qwark Allen: warburg, rothshield, etc

[13:23] herman Bergson: I wouldn't say so Qwark....

[13:23] Qwark Allen: its the ones that owns the federal reserve bank also

[13:23] herman Bergson: A lot has changed....

[13:23] Qwark Allen: and the IMF and the world bank etc

[13:23] herman Bergson: Yes...banks have had always political influence, if you mean that, Qwark

[13:23] Tessa Zalivstok: so let me summarize

[13:23] Tessa Zalivstok: greed is bad

[13:23] Gemma Allen: actually at this point the IMF can help

[13:24] Gemma Allen: but is not

[13:24] Tessa Zalivstok: money would be much better if we didn't have it

[13:24] Qwark Allen: all this banks belong to the same persons

[13:24] druth Vlodovic: one of the big changes is that the idea of having concern for others is considered reprehensible in business

[13:24] Debbie Dee: The deeper problem is that we all expect our investments to do well, and are not concerned with how.

[13:24] Tessa Zalivstok: we'd joyously give away our goods

[13:24] herman Bergson: I'll get to that in the next lecture Qwark ^_^

[13:24] Qwark Allen: its them that dictate how the world flow

[13:24] herman Bergson: Exactly Debbie

[13:24] Tessa Zalivstok: there would be no oil, no banks and no anti depressants?

[13:25] Mick Nerido: a lot of the problem if from globalization, it's like the wild west between nation state, everyone out to beat the other.

[13:25] Qwark Allen: i found it fun to know, that the warburg brothers loaned money to the allies and to germany also in both world wars

[13:25] Kime Babenco: Bak in the years, I guess 1950, there has been a small book that described communism as a farm where eventually arrive capitalism in... I guess you high time to rewrite that book about capitalism as well...

[13:25] Tessa Zalivstok: oh and we would have absolutely nothing to do with people outside out borders

[13:25] Qwark Allen: was them also that loaned the money for the russian revolution

[13:25] druth Vlodovic: play a game of "risk" and you can see part of the problem, as resources accumulate you have more power to accumulate resources

[13:26] Tessa Zalivstok: we wouldn't need resources

[13:26] herman Bergson: George Orwell, Animal Farm

[13:26] Tessa Zalivstok: especially oil and gas

[13:26] Qwark Allen: was the same ones that are responsible for the 9/11

[13:26] Kime Babenco: Yes, Herman ;-)

[13:26] Debbie Dee: So, Herman - you need to get us thinking clearly about our moral values - since we are complicit in the activities of bankers and big business.

[13:26] Qwark Allen: i`ll say if we want to change the world, we got to get rid of all this greedy bankers

[13:26] Tessa Zalivstok: I agree

[13:26] Bejiita Imako: yes

[13:26] Gemma Allen: who will take their place

[13:27] herman Bergson: Yes Debbie that is my intention :-))

[13:27] Gemma Allen: :-)

[13:27] Tessa Zalivstok: since in this world there's no money we wouldn't need them

[13:27] Debbie Dee: we got to change ourselves, and then the big bankers.

[13:27] Qwark Allen: get them in jail, confiscate their trillions of dollars

[13:27] Gemma Allen: ♥ LOL ♥

[13:27] Tessa Zalivstok: hehe

[13:27] Kime Babenco: I think we are social humans when we need it, but a-social when we don't need

[13:27] Mick Nerido: China and India will be next super powers, perhaps Eastern philosophy will come to the fore...

[13:27] Tessa Zalivstok: but who would build this jail?

[13:27] Tessa Zalivstok: it'd have to be a big one

[13:27] Bejiita Imako: yes like in Startrek, and then they have all resources to make these huge ships cause there are no cost in making and developing them

[13:27] druth Vlodovic: we'd need to have a less law-based legal system, currently anything that isn't illegal is good,as was said, but this is because we gave up our moral right to think to "rule of law"

[13:27] Qwark Allen: china and india will perish before that

[13:27] Qwark Allen: they are already in a trap, they can`t escape

[13:27] Lizzy Pleides: we shouldn't regard things only as black or white (bad or good) Tessa, there's a way between too

[13:27] Gemma Allen: ♥ LOL ♥

[13:27] Gemma Allen: china is up and coming with the money

[13:28] Qwark Allen: china GDP is a fake

[13:28] Gemma Allen: they are getting like the rest of us

[13:28] Bejiita Imako: basically if u want to make something u just do it

[13:28] Tessa Zalivstok: yep

[13:28] Tessa Zalivstok: no laws

[13:28] Gemma Allen: they are investing in africa!!!!!

[13:28] Tessa Zalivstok: that'd keep the bankers straight

[13:28] Gemma Allen: big time!!!

[13:28] Bejiita Imako: now for ex the road service, roads are bad and railroads need to upgrade

[13:28] herman Bergson: smiles....

[13:28] Bejiita Imako: all i hear is cant be done , no money for that

[13:28] Debbie Dee: Yes they are - buying mines down here in South Africa.

[13:28] Qwark Allen: thats not a investment, cause africa is not benefiting with it

[13:28] Tessa Zalivstok: I think we should abolish travel

[13:29] Gemma Allen: actually they are in some countries

[13:29] Kime Babenco: Investing in Africa (China) but those who work there are at slave conditions !

[13:29] Tessa Zalivstok: we'd just get to the borders and have to deal with foreigners

[13:29] herman Bergson: A lot of ideas ....!

[13:29] Lizzy Pleides: we need laws and moral people

[13:29] herman Bergson: I think we already have the solution here.... ^_^

[13:29] Tessa Zalivstok: isn't that globalisation?

[13:29] Debbie Dee: I think I am going to move into SL permanently ';)

[13:29] Gemma Allen: Yes-ah!

[13:29] Gemma Allen: it is

[13:29] herman Bergson: Globalization is indeed one of the big problems here

[13:29] Tessa Zalivstok: doesn't SL depend on electricity?

[13:29] Tessa Zalivstok: isn't that oil and gas

[13:29] druth Vlodovic: laws replace morality, and the need for it, but without them good and bad are subjective

[13:29] Gemma Allen: actually what we need is a good invasion of aliens to remind us the whole world is important

[13:29] herman Bergson: Yes it does Tessa

[13:29] Tessa Zalivstok: ah well.....

[13:30] herman Bergson: So we are the slaves of the RL world

[13:30] Gemma Allen: outer space aliens that is

[13:30] Debbie Dee: Globalization is killing diversity, and species.

[13:30] Tessa Zalivstok: Oh yes

[13:30] Tessa Zalivstok: that's why we should all stay at home

[13:30] Mick Nerido: we need to recognize we are all part of one community on planet earth...

[13:30] Tessa Zalivstok: that'd be the answer

[13:30] Kime Babenco: What is globalization ? Coca Cola in every corner of the world ? Or do you mean bringing PEOPLE closer together in mind and ideas ?

[13:30] Umae Ying: laws.... vs. deregulation

[13:30] Tessa Zalivstok: after all we just meet foreigners

[13:31] Umae Ying: the deregulating is why the bankers and wall street are getting away with this

[13:31] herman Bergson: Well, my friends ^_^

[13:31] Qwark Allen: http://www.youtube.com/watch?v=Vyn73ARRKls&feature=related

[13:31] herman Bergson: Thank you for such an enthusiast  response....

[13:31] Gemma Allen: ♥ LOL ♥

[13:31] Gemma Allen: we see where we are going with this

[13:31] Qwark Allen: http://www.youtube.com/watch?v=Lec9giab90I

[13:31] Gemma Allen: big discussions

[13:31] druth Vlodovic: replacing laws with no laws is a dangerous path we are already on, I wish I did have an answer

[13:31] Qwark Allen: watch this 2 videos to have a idea what is going on on the world

[13:31] Bejiita Imako: ok

[13:32] Gemma Allen: i doubt it :-0

[13:32] herman Bergson: Yes Gemma ...I guess this will become a heavy project.....

[13:32] Umae Ying: LOOPHOLES

[13:32] Gemma Allen: Yes-ah!

[13:32] Umae Ying: so itis legal

[13:32] Bejiita Imako: interesting for sure

[13:32] Bejiita Imako: ㋡

[13:32] herman Bergson: Let me ask your attention for some homework.....PLZ

[13:32] Mick Nerido: it's always messy when there is a paradigma shift

[13:32] Gemma Allen: oho

[13:33] Gemma Allen: homework

[13:33] Debbie Dee: homework ?

[13:33] Annie Brightstar: Ooooh homework

[13:33] herman Bergson: Behind me is a graphic...

[13:33] herman Bergson: Does the term purchasing power mean anything to you?

[13:33] Gemma Allen: Yes-ah!

[13:33] Mick Nerido: yes

[13:33] Umae Ying: no

[13:33] Debbie Dee: yep

[13:33] Annie Brightstar: yes

[13:33] Catt: eys

[13:33] herman Bergson: ok...there is a no...so let me explain.....

[13:33] Bejiita Imako: i think so

[13:33] Catt: yes

[13:34] .: Beertje :.: no

[13:34] Kime Babenco: What is power ?

[13:34] Bejiita Imako: i think basically is how willing we are to buy stuff

[13:34] herman Bergson: with your income you can buy goods and services....a certain amount of it....

[13:34] Lizzy Pleides: Kaufkraft in german

[13:34] Debbie Dee: actually - no. purchasing power of what?

[13:34] Mick Nerido: how much your money can buy

[13:34] herman Bergson: that is your purchasing power (very much oversimplified)

[13:34] Debbie Dee: ok

[13:34] Gemma Allen: it would be nice if you could allow us to take a copy

[13:34] Bejiita Imako: ah

[13:35] herman Bergson: Now you get a raise of 5%....so you might think that your purchaceing power increases...

[13:35] Kime Babenco: Power in the ability to buy something... you mean ?

[13:35] herman Bergson: However.....prices go up 6%.....

[13:35] herman Bergson: Yes Kim....

[13:35] Gemma Allen: this is exactly what is going on with all of us ..... raises are not equal to getting ahead with purchasing power

[13:35] herman Bergson: This means that your purchasing power actually DECREASES with 1%

[13:36] Tessa Zalivstok: yes but on average this rarely happens

[13:36] Gemma Allen: except for the top %

[13:36] Mick Nerido: inflation

[13:36] Bejiita Imako: aaa then i get it ㋡

[13:36] Gemma Allen: they are becoming an oligarchy here in the usa

[13:36] herman Bergson: Well..Gemma...I think that you already got the picture ^_^

[13:36] Tessa Zalivstok: wages and prices tend to inflate at roughly the same rate which is the rate of increase of broad money

[13:36] Bejiita Imako: how much my money can buy

[13:36] herman Bergson: No no..Tessa.....

[13:36] Tessa Zalivstok: so what is the point of this graph?

[13:36] Tessa Zalivstok: yes yes Herman

[13:36] Gemma Allen: no they dont

[13:37] herman Bergson: at this moment there are elections in the Netherlands....September 12

[13:37] Umae Ying: in massechusetts... big people in suits are getting raises of around 20-30% and the little guys are hardly getting a raise at all...

[13:37] Gemma Allen: look at the tp percent!! everyone else is losing ground!!!

[13:37] Bejiita Imako: i heard some horrible things now before in sweden

[13:37] Tessa Zalivstok: yes they do because they are in one sense expressions of the same function which is the amount of broad money

[13:37] herman Bergson: And all politicians do do anything else than debating about the purchasing power of the people....

[13:37] Lizzy Pleides: it seemes money is made for industries, Banks and the finance ministers and a few rich people

[13:37] herman Bergson: does is go up or does it decrease...

[13:37] Tessa Zalivstok: money is made for exchanging goods and services

[13:37] Bejiita Imako: a lot of high organizations leaders have used our tax money and had parties for millions

[13:37] Tessa Zalivstok: as a store of value

[13:37] herman Bergson: this is independent of inflation etc....

[13:37] Gemma Allen: the only ones getting ahead are the top 10%

[13:37] Bejiita Imako: here in sweden

[13:38] Bejiita Imako: no good at all

[13:38] Tessa Zalivstok: it's easier to carty round that sheep

[13:38] Catt: herman to which graphic are you referring?

[13:38] Gemma Allen: here in USA it is the top 1%

[13:38] herman Bergson: Yes Gemma....

[13:38] herman Bergson: And the homework is....

[13:38] Tessa Zalivstok: Herman could you explain the point of your graph?

[13:38] herman Bergson: How do you interpret this graphic...

[13:38] Tessa Zalivstok: I'm not sure you've had a chance to

[13:38] Kime Babenco: Politicians run from one election to another.. that's why they don't do very much... only spreading popular ideas...

[13:39] herman Bergson: Tessa..the homework is that YOU explain the point of that graphic....^_^

[13:39] Gemma Allen: :-)

[13:39] Bejiita Imako: aaa ok

[13:39] Tessa Zalivstok: well

[13:39] Debbie Dee: Good one herman.

[13:39] Gemma AllenGemma Allen GIGGLES!!

[13:39] Gemma Allen: ...LOL...

[13:39] Gemma Allen: it is already done Herman

[13:39] Kime Babenco: I will try

[13:39] druth Vlodovic: what is the source of the graph?

[13:40] Tessa Zalivstok: unless you can give us a geographical and temporal frame I dont think it's explainable

[13:40] Gemma Allen: Make sure you re reading it properly

[13:40] herman Bergson: Anyone who has an idea about its interpretation, write it in a notecard and send it to me ....would be fun ^_^

[13:40] Gemma Allen: Yes-ah!

[13:40] Gemma Allen: what is the source

[13:40] Bejiita Imako: i think i grasp it

[13:40] herman Bergson: The graphic applies only to the Netherlands...sorry Tessa ..I should have mentioned that

[13:40] Gemma Allen: is it global?? or a country graph

[13:40] Bejiita Imako: ok

[13:40] Gemma Allen: ah ok

[13:40] Catt: ok see it now, the whole room hadn't loaded for me

[13:40] Tessa Zalivstok: Herman all it says it that people with money can buy more than people without money

[13:40] Kime Babenco: It would be around here all week ?

[13:40] Tessa Zalivstok: next?

[13:40] Gemma Allen: our graph here is worse !!!!!!

[13:41] Gemma Allen: Herman

[13:41] herman Bergson: But I guess that it could be a global phenomenon

[13:41] Gemma Allen: make it copy for us

[13:41] Gemma Allen: we can bring it to inventory

[13:41] herman Bergson: as sec

[13:41] Bejiita Imako: aaa yes can be handy to have

[13:41] Kime Babenco: Yes

[13:41] Bejiita Imako: ㋡

[13:41] Debbie Dee: I think it says that the low earners purchasing power is erode, and the top earners purchasing power is growing

[13:41] Debbie Dee: the rich are getting richer - doh!

[13:41] Gemma Allen: ok got it

[13:41] herman Bergson: ok.....done....you should be able to take a copy of the graphic now

[13:42] druth Vlodovic: it says that the ability to buy as a percentage of what you could buy last year has changed, with some people being able to buy more and some less

[13:42] herman Bergson: Exactly Druth

[13:42] Tessa Zalivstok: there is no time line here Herman

[13:42] Kime Babenco: I haven'y

[13:42] Kime Babenco: t

[13:42] Tessa Zalivstok: minus ten per cent of what when where?

[13:42] druth Vlodovic: I assume the numbers at top and bottom are percentage points?

[13:42] Tessa Zalivstok: meaningless as it stands

[13:43] Gemma Allen: no it isnt

[13:43] herman Bergson: The black line, Tessa can be regarded as an index

[13:43] Bejiita Imako: as i get it the graph say that all but the ones with highest income have had increasing purchasing power and all others have weakend

[13:43] Annie Brightstar: Over what time scale

[13:43] Tessa Zalivstok: Herman if there's no time line it makes no sense

[13:43] Debbie Dee: Perfectly constructed graph - I agree with Bajita

[13:43] Kime Babenco: Ot says 2011

[13:43] herman Bergson: One year....only 2011 related to previous years

[13:44] Debbie Dee: it has a time point - 21011

[13:44] Tessa Zalivstok: percent of what?

[13:44] Annie Brightstar: Has it gone up 10% in a year

[13:44] Tessa Zalivstok: widgets?

[13:44] Annie Brightstar: or a millenium

[13:44] Tessa Zalivstok: bottles of milk?

[13:44] herman Bergson: You could read it as a real raise in salary Tessa

[13:44] herman Bergson: or a decrease of salary

[13:44] Tessa Zalivstok: herman raises in salary aren't raises in purchasing power

[13:44] Tessa Zalivstok: they night be

[13:45] Annie Brightstar: But over what period Herman

[13:45] Tessa Zalivstok: but not here

[13:45] herman Bergson: that is what I explained before

[13:45] Tessa Zalivstok: you have to talk about productivity of labor if you talk about the possibility of raising real wages

[13:45] herman Bergson: this is an increase /decrease of purchasing power..independent of inflation or raises in salary...

[13:46] herman Bergson: they are all used in the calculation of these percentages

[13:46] Tessa Zalivstok: you see that would be rubbish if it was true

[13:46] Tessa Zalivstok: thistory shows us clearly that as labor productivity rises then real wages rise along with it and real purchasing power

[13:46] Tessa Zalivstok: thats just a fact

[13:47] herman Bergson: believe me Tessa ...these are real figures calculated by the Dutch institute of statistics...

[13:47] druth Vlodovic: lol,you obviously know little about manufacturing tessa

[13:47] druth Vlodovic: productivity per worker tends to raise every year

[13:47] herman Bergson: I just ask..what does the graphic tell you..

[13:47] druth Vlodovic: but wages are currently frozen in many plants

[13:47] Debbie Dee: Herman, the graph is clear to me. Thanks.

[13:47] Tessa Zalivstok: yes but of what over what period of time

[13:48] Catt: wages are often frozen in many sectors

[13:48] herman Bergson: True Druth...

[13:48] Tessa Zalivstok: makes zero sense

[13:48] Kime Babenco: Prices rice when for some reason, for example a bad harvest, but never falll the year next when harvest is good again

[13:48] herman Bergson: One year...2011

[13:48] Debbie Dee: the time period is one year - 2011

[13:48] herman Bergson: in relation to 2012

[13:48] Annie Brightstar: Druth I know that I sit here in front of a computer and have a house and holidays abroad

[13:48] Tessa Zalivstok: oh so what

[13:48] herman Bergson: or the previous year

[13:48] Tessa Zalivstok: I can show you graphs over 30 years where all of those would go up

[13:48] Tessa Zalivstok: lots of them

[13:48] Tessa Zalivstok: more than otherwise

[13:48] Annie Brightstar: and I know that around 1900 the average life expectancy of my family was 40 years

[13:49] Tessa Zalivstok: way more than otherwise

[13:49] Annie Brightstar: and you try to tell me things are getting worse

[13:49] herman Bergson: Everyone may enjoy the graphic the way he or she likes...

[13:49] Qwark Allen: will get much worst when china economy collapses

[13:49] herman Bergson: my question is just: what does the graphic tell you

[13:49] Catt: So Tessa, are you suggesting that looking at just 1 year doesn't give us a big enough scope for the argument?

[13:49] herman Bergson: To some maybe nothing ^_^

[13:49] herman Bergson: that is ok

[13:50] Tessa Zalivstok: I can show you graphs that clearly demonstrate that over the past thirty hears in South Eest Asia every one of those deciles would show a real growth of hundreds of per cent

[13:50] Tessa Zalivstok: thousnads of per cent

[13:50] llStopAnimation: Script trying to stop animations but agent not found

[13:50] Tessa Zalivstok: what do you say to that Herman

[13:50] druth Vlodovic: compare the same graphs to ontario during the same period

[13:50] Tessa Zalivstok: and btw it's fuelled by oil and gas

[13:51] Tessa Zalivstok: and financed by evil bankers

[13:51] Tessa Zalivstok: Herman I would like you to address my question

[13:51] Lizzy Pleides: statistics are always useful for those who pay it

[13:51] Qwark Allen: °͜° l ☺ ☻ ☺ l °͜°

[13:51] Qwark Allen: lol

[13:51] Kime Babenco: My grandfather told me his father bought a house for what would now be equal as 250 US$... that was in 1920...

[13:51] herman Bergson: Tessa ..I do say nothing about the graphic....I leave it to anyone who has some idea about it

[13:52] Tessa Zalivstok: hw do you explain that in S E Asia and in many other places every one of those deciles has gone up by hundreds of per cent in the past thrity years?

[13:52] Catt: smiles at herman

[13:52] Gemma Allen: because they started from no where !!!

[13:52] Tessa Zalivstok: well?

[13:52] druth Vlodovic: outsourcing from western countries

[13:52] Gemma Allen: catching up

[13:52] herman Bergson: I am a philosopher...not an economist....:-))

[13:52] Umae Ying: yes because you start from zero

[13:52] Gemma Allen: right

[13:53] herman Bergson: And I love to keep it that way....

[13:53] Umae Ying: there is only up to go

[13:53] Tessa Zalivstok: because their productivity of labor has increased by multiples

[13:53] Gemma Allen: china is slowing down a bit now

[13:53] druth Vlodovic: which is why in much of the west things are getting tighter for the lower income brackets

[13:53] Gemma Allen: but still going

[13:53] Tessa Zalivstok: they used to produce 100 dollars per head

[13:53] Umae Ying: the secret is percentage....check percentage

[13:53] Kime Babenco: I don't live in USA , I only mentioned US$ so you would have an idea

[13:53] Catt: India is looking at Shanghai as a possible economic model

[13:53] Tessa Zalivstok: now they produce tens of thousands of dollars per head

[13:53] Tessa Zalivstok: simple

[13:53] Gemma Allen: ♥ LOL ♥

[13:53] Gemma Allen: we will finish the whole course in one day!!!

[13:53] Gemma Allen: ♥ LOL ♥

[13:53] Gemma Allen: time to go

[13:53] Qwark Allen: °͜° l ☺ ☻ ☺ l °͜°

[13:53] Qwark Allen: lol

[13:53] Lizzy Pleides: I must go off, night everybody

[13:53] Bejiita Imako: hahahah

[13:53] herman Bergson: Thank you Gemma....

[13:53] Gemma Allen: right

[13:53] Bejiita Imako: cu Lizzy

[13:53] Bejiita Imako: night

[13:53] Gemma Allen: yw

[13:53] Annie Brightstar: Night Lizzy

[13:53] druth Vlodovic: if one person produces ten thousand dollars a day and makes $100 is that a good thing?

[13:54] herman Bergson: and may I thank you all for your delightful participation...

[13:54] Qwark Allen: see you thursday

[13:54] druth Vlodovic: and why is that person's wages being frozen?

[13:54] Gemma Allen: ♥ LOL ♥

[13:54] herman Bergson: Class dismissed ^_^

[13:54] Qwark Allen: ::::::::: * E * X * C * E * L * L * E * N * T  * ::::::::::

[13:54] Qwark Allen: start

[13:54] Qwark Allen: ¸¸.☆´ ¯¨☆.¸¸`☆** **☆´ ¸¸.☆¨¯`☆ H E R MA N ☆´ ¯¨☆.¸¸`☆** **☆´ ¸¸.☆¨¯`

[13:54] herman Bergson: Thank you Qwark

[13:54] Umae Ying: that is better than making ten dollars a day and then getting ten cents more

[13:54] Debbie Dee: Bye lizzy

[13:54] Gemma Allen: see you thursday

[13:54] Bejiita Imako: well thats one thing, the bosses get bigger and bigger bonuses the workers doing all work nothing at all

[13:54] Gemma Allen: i hope

[13:54] .: Beertje :.: that was some start of the lectures :)))

[13:54] Debbie Dee: thanks a lot herman - nice to be back.

[13:54] druth Vlodovic: making ten cents more on ten dollars is a ten percent increase

[13:55] druth Vlodovic: a nice raise

[13:55] Kime Babenco: I am not sure Druth...

[13:55] druth Vlodovic: depending on inflation

[13:55] herman Bergson: Good to see you all again too :-))

[13:55] Bejiita Imako: ok cu all soon

[13:55] herman Bergson: Bye Bejiita

[13:55] druth Vlodovic: a fellow from Sudan told me that Canada is crazy, because here it takes more than one person to make enough money for two

[13:55] Debbie Dee: Bye fellow students - cu all on thursday

[13:55] druth Vlodovic: but back in his homeland one person makes enough for 20

[13:56] Kime Babenco: Only if you get lucky to become 100 years old, you live for 3,3 billion seconds... You lost almost 3600 by sitting here lol

[13:56] druth Vlodovic: from a straight dollar amount the person in Sudan makes less

[13:56] llStopAnimation: Script trying to stop animations but agent not found

[13:56] .: Beertje :.: have a goodnight all:) see you next thursday

[13:56] herman Bergson: Bye Beertje ^_^

[13:56] druth Vlodovic: ty for the lecture herman

[13:57] herman Bergson: My pleasure Druth

[13:57] .: Beertje :.: bye Herman:) and thank you

[13:57] druth Vlodovic: I'm glad your walls here are fireproof :)

[13:57] Kime Babenco: They have sharp dents there to bite coins in quarters

[13:57] Annie Brightstar: thank you Herman

[13:57] Kime Babenco: Thank you and bye Herman

[13:57] herman Bergson: You are welcome Annie

[13:58] Kime Babenco: Thursday back ?

[13:58] Catt: cheers herman, thanks!

[13:58] herman Bergson: thnx Catt... :-))

[13:58] Annie Brightstar: Good night

[13:59] herman Bergson: Bye Annie

[13:59] Tessa Zalivstok: good evening Herman

[13:59] herman Bergson: Bye Tessa ^_^

[14:00] Kime Babenco: Bye herman

[14:00] herman Bergson: Bye Kime ㋡

[14:01] herman Bergson: hmmm a good start and a lively class ^_^

412: The Utopia of the Free Market - The final Lecture

This is the last lecture of the project  "The Utopia of the Free Market". My goal was to show you, that what is called the financial crisis of today, is not just a financial crisis at all.

It is an existential crisis which forces us again to redefine the meaning of human life on a planet with limited resources.

What never reaches the newspapers, is the fact that at the bottom of the present crisis, is a set of utopian assumptions about us, human beings.

The worst of all is formulated by Adam Smith and in a more literary way by Ayn Rand: The Virtue of Selfishness, as she calls it.

The second assumption is that because all people are driven by selfishness it eventually will balance out, so that in fact the common good is served. In other words, the believe in the self-regulating free market.

But these utopian beliefs have a number of negative effects:

A. an impoverishment of human relationships because the world is reduced to a market (Money can buy everything….);

B. expropriations and violent uprooting of large groups of people, which happens in several countries to get access to natural resources by multinationals;

C. increasing social inequality;

D. exclusion of people who can not handle the competition in the free market;

E. degradation of the political power of communities, e.g. Thatcher succeeded in pulling the teeth of the unions;

F. a paradoxical increase in monitoring and control (everywhere surveillance cameras, in unstoppable increase of rules and regulations)

But you could object…but what about our increased prosperity? You can not deny that neoliberalism brought us that. 

And point A to E… it is just a matter of time to iron out these.

To begin with the last argument. If you mean that the policy of the Washington Consensus (1989)  maybe up to now  has not yet reached the expected results but certainly will in the future, you exchange empiricism for ideology.

And with regard to our increased prosperity, as alleged by  neo-liberals. Robert Skidelsky, born 25 April 1939, British economic historian and Emeritus Professor of Political Economy at the University of Warwick, England, came to different conclusions in his book "Keynes: The Return of the Master" (2009).

He compared the periods of Keynesianism with the periods of the neoliberal Washington Consensus. From 1951 to 1980 (keynesian period) the average global economic growth was 4.8%. From 1989 to 2009 the growth was 3.2% due to  the neo-liberal policy.

You can imagine what would have happened when this global economic growth of 4.8% had continued. According to Skidelsky's calculations our prosperity would have been 50% higher than it is now.

The financial crisis of today shows us that the neo-liberal utopia does not bring the good life, which it promises. We need more wisdom to shape our future.

Let me put it this way: you can distinguish three elements which constitute our world: The Market -- The State -- The Society.

The market is the global mechanism of exchanging goods and services. The state is the regulating principle in this and society are we, individual humans who want a good life, which means we want to  live in a community (family, town, country) and feel happy.

And here we need Aristotle (384 - 322 B.C), for what we need is what he already identified as justice. It is about the general good of society. 

Justice is not a property of the system, but a property of man himself. A righteous man, in his opinion, gives to everyone what he deserves.

As I  have emphasized in several lectures, the future will be about an equitable distribution of the limited resources of this earth and for that we need the virtue of justice.

The Discussion

[13:21] herman Bergson: This concludes the project and the lectures of this season....

[13:21] herman Bergson: Next lecture will be in the week of September 1 ^_^

[13:21] Debbie Dee (framdor): Yesss.... Thanks herman.

[13:21] herman Bergson: Thank you... ㋡

- My Second Live Viewer crashed, so I had to relog -

[13:23] Gemma Allen (gemma.cleanslate): *:::* WELCOME BACK *:::*

[13:23] Annie Brightstar (anniebrightstar): Welcome back Herman

[13:23] herman Bergson: A real dramatic timing of a crash ^_^

[13:23] Bejiita Imako: wb herman

[13:23] Bejiita Imako: ㋡

[13:23] Gemma Allen (gemma.cleanslate): ♥ LOL ♥

[13:23] Gemma Allen (gemma.cleanslate): was

[13:23] Debbie Dee (framdor): dramatic exit herman ;)

[13:23] Bejiita Imako: hehe

[13:23] herman Bergson: yes Debbie ^_^

[13:24] Gemma Allen (gemma.cleanslate): thought you just deserted us

[13:24] Debbie Dee (framdor): can we do drama next semester ;)

[13:24] herman Bergson: Yes ...looked like it indeed Gemma ㋡

[13:24] Gemma Allen (gemma.cleanslate): do you have the next project ???

[13:24] herman Bergson: but no...

[13:24] Lizzy Pleides: if anybody is interested in the documentation i mentioned earlier, here's the link: http://www.youtube.com/watch?v=zmk6ZkTOYic

[13:24] Annie Brightstar (anniebrightstar): Thank you Lizzy

[13:24] herman Bergson: Ahh LIzzy...

[13:24] Gemma Allen (gemma.cleanslate): ♥ Thank Youuuuuuuuuu!! ♥

[13:24] Gemma Allen (gemma.cleanslate): lizzy

[13:25] herman Bergson: That was about that movie?

[13:25] Bejiita Imako: nice

[13:25] Lizzy Pleides: yes

[13:25] herman Bergson: good..

[13:25] Lizzy Pleides: i found it in german only but i think you can find it in english too

[13:25] herman Bergson: ANyone got a remark or question about this lecture?

[13:25] .: Beertje :. (beertje.beaumont): german is no problem Lizzy

[13:26] Gemma Allen (gemma.cleanslate): well i hope that the rand people do not win

[13:26] herman Bergson: Ist mir egal Lizzy ^_^

[13:26] Gemma Allen (gemma.cleanslate): that the pendulum swings

[13:26] Debbie Dee (framdor): So as good citizens herman, we should we do?

[13:26] Penelope Apparatchik (penelope.grau): take care of those, whom god sets before us :)

[13:26] druth Vlodovic is online.

[13:26] herman Bergson: Yes Gemma....it is a pendulum effect....

[13:26] Bejiita Imako: this was a really interesting subject

[13:26] Gemma Allen (gemma.cleanslate): Yes-ah!

[13:26] Gemma Allen (gemma.cleanslate): i think so

[13:26] herman Bergson: The Rand people wont win...

[13:26] Bejiita Imako: opened my mind for sure ㋡

[13:27] Debbie Dee (framdor): I think we need to be mindful of our thoughts and actions.

[13:27] herman Bergson: Thank you Bejiita

[13:27] Bejiita Imako: ㋡

[13:27] Lizzy Pleides: when the Rand people would win, they would be lost themselves

[13:27] herman Bergson: Yes Debbie....

[13:27] Debbie Dee (framdor): and we probably need a lot more socialism

[13:27] Penelope Apparatchik (penelope.grau): they lost already, Liz

[13:27] herman Bergson: And a lot of people are really thinking about the present situation....

[13:28] herman Bergson: just keep your eyes open....read your newspaper...

[13:28] Merlin (merlin.saxondale): It is difficult to know whether we can make a difference by just doing the right thing as individuals

[13:28] Gemma Allen (gemma.cleanslate): Yes-ah!

[13:28] Gemma Allen (gemma.cleanslate): it is

[13:28] Gemma Allen (gemma.cleanslate): and they are going after the unions all of them

[13:28] Gemma Allen (gemma.cleanslate): here in the USA anyway

[13:28] Debbie Dee (framdor): we are all individuals

[13:28] Penelope Apparatchik (penelope.grau): of course we make a difference

[13:29] Debbie Dee (framdor): every one of us. including Ayn Rand.

[13:29] herman Bergson: Yes I think so too Penelope...

[13:29] Gemma Allen (gemma.cleanslate): Yes-ah!

[13:29] Gemma Allen (gemma.cleanslate): still hopes

[13:29] Merlin (merlin.saxondale): Well I try to act in a way which I think everyone should, and if they did it would be ok

[13:29] herman Bergson: Every voice and vote makes a difference...

[13:29] Penelope Apparatchik (penelope.grau): if you are nice to someone, that makes a difference

[13:29] Merlin (merlin.saxondale): When the world burns I can at least say 'it wasnt me'

[13:30] herman Bergson: You just have to be politically alert....

[13:30] Debbie Dee (framdor): yes. and stand up to other people who are making bad decisions on a daily basis

[13:30] Gemma Allen (gemma.cleanslate): if you find anything this summer of interest about this perhaps send to herman an dhe can send a notice to the group

[13:30] Penelope Apparatchik (penelope.grau): nothing like optimism, Merlin :)

[13:30] Merlin (merlin.saxondale): But we have the arch Environmentalist Jonathan Porritt jet-setting around the world

[13:30] Merlin (merlin.saxondale): He does not lead by example

[13:30] herman Bergson: I have to think about a new project this summer ^_^

[13:31] Bejiita Imako: ㋡

[13:31] Gemma Allen (gemma.cleanslate): Yes-ah!

[13:31] Penelope Apparatchik (penelope.grau): illogical positivism :)))

[13:31] Gemma Allen (gemma.cleanslate): i am sure you will find something

[13:31] herman Bergson: smiles

[13:31] Debbie Dee (framdor): i like illogical positivism.

[13:31] Penelope Apparatchik (penelope.grau): sure, why not?

[13:31] Penelope Apparatchik (penelope.grau): might as well be cheerful :)

[13:32] herman Bergson: Well I am thinking about the themes Justice...or The Ethics of money....

[13:32] Merlin (merlin.saxondale): *sings Reasons to be cheerful part three

[13:32] herman Bergson: as a follow up of this project

[13:32] Bejiita Imako: oki

[13:32] Bejiita Imako: can be a suiting subject

[13:33] herman Bergson: I mean....we should work on a world where justice prevails...so we have to know what justice is

[13:33] herman Bergson: It is not greed...

[13:33] Debbie Dee (framdor): well, please let us know herman. I enjoyed this project, and will be back.

[13:33] Bejiita Imako: aaa yes

[13:33] herman Bergson: You are welcome Debbie...

[13:33] Merlin (merlin.saxondale): Justice is often a euphemism for revenge, retaliation and retribution

[13:34] herman Bergson: There you go Merlin.....

[13:34] herman Bergson: at least worth two or three lectures ^_^

[13:34] Debbie Dee (framdor): Military intelligence, and fighting for peace, are both commonly used oxymorons

[13:34] Merlin (merlin.saxondale): :))

[13:34] Bejiita Imako: the sum of all this u can say is we have to hope for a more fair world where everyone not only the ones with money can get a good life

[13:35] Bejiita Imako: hope that the development today reverses in some way

[13:35] Bejiita Imako: hope for the best

[13:35] Gemma Allen (gemma.cleanslate): yep

[13:35] Qwark Allen: maybe that will hapen, if a rock falls from the sky

[13:35] Debbie Dee (framdor): I foresee wide spread famine first, as resource depletion curtails the population explosion

[13:35] Gramps Mistwalker is offline.

[13:35] Merlin (merlin.saxondale): Exactly Debbie

[13:36] Debbie Dee (framdor): and global warming reduces crop yields

[13:36] herman Bergson: Skidelsky suggest in the last chapter of his book that there is a pendulum movement in economics...

[13:36] Gemma Allen (gemma.cleanslate): according to history i agree

[13:36] herman Bergson: one period the greedy ones prevail.....individualism....in the other one solidarity prevails...

[13:36] Debbie Dee (framdor): well - it is an over-excited pendulum - the upswing is eneormous right now...

[13:36] Gemma Allen (gemma.cleanslate): Yes-ah!

[13:37] Debbie Dee (framdor): so the downswing will be too?

[13:37] herman Bergson: since ..say 1989 ..the Randians were the dominating species ...the greedy bankers and bonuses

[13:37] Gemma Allen (gemma.cleanslate): maybe but maybe years b4 the upswing is proved wrong

[13:37] Debbie Dee (framdor): too scary to contemplate...

[13:37] Annie Brightstar (anniebrightstar): When exactly did solidarity prevail Herman?

[13:38] Debbie Dee (framdor): i think i will carry on hiding in the forests, growing my own food

[13:38] herman Bergson: in the 50s and 60s...

[13:38] Annie Brightstar (anniebrightstar): Please may I join you Debbie?

[13:38] Annie Brightstar (anniebrightstar): No, no never Herman

[13:38] Debbie Dee (framdor): lol...

[13:38] herman Bergson: Especially in Europe...where everybody had the feeling that they had to rebuild the world...a better one after the destructive World War II

[13:39] Debbie Dee (framdor): It is only hidden if I don't tell you where i am ;)

[13:39] Gemma Allen (gemma.cleanslate): Yes-ah!

[13:39] Bejiita Imako: hmm yes

[13:39] Annie Brightstar (anniebrightstar): I don't recall the Cuban missile crises being a fun time

[13:39] herman Bergson: then in the 70s when prosperity increased the individual and his money became dominant...

[13:40] herman Bergson: As Rand said...the Americans coined the phrase : We can make money....

[13:40] herman Bergson: and making money became the main target...

[13:40] Debbie Dee (framdor): Now we all make money.

[13:40] herman Bergson: Banks made money....by creating debts....

[13:40] herman Bergson: mortgages subprime stuff etc...

[13:40] Debbie Dee (framdor): the industrial revolution produced machines that made stuff.

[13:41] Debbie Dee (framdor): People no longer were needed.

[13:41] Debbie Dee (framdor): but they needed pay - so had to be employed.

[13:41] Debbie Dee (framdor): then we made the internet, so we could look busy

[13:41] herman Bergson: Yes..Debbie also a period of asking money...so an increasing social inequality

[13:41] Debbie Dee (framdor): while making money.

[13:41] Debbie Dee (framdor): lol

[13:42] Bejiita Imako: haha

[13:42] Bejiita Imako: i thought we made internet to communicate

[13:42] Debbie Dee (framdor): that too.

[13:42] herman Bergson: So we do Bejiita...

[13:42] Debbie Dee (framdor): and that is a huge force for change.

[13:42] Annie Brightstar (anniebrightstar): No its to play Farmville I thought everyone knew that

[13:42] Bejiita Imako: and CERN who created the www made it so it should be open free and controlled by nobody

[13:42] Bejiita Imako: created

[13:42] Debbie Dee (framdor): social networking is changing the way we get information

[13:43] Bejiita Imako: indeed

[13:43] Debbie Dee (framdor): and that breaks the government propoganda systems

[13:43] herman Bergson: Fact is that things are changing rapidly these days....

[13:43] Lizzy Pleides: the internet enables us to make a global brainstorming

[13:43] Debbie Dee (framdor): Oh yes. And you are helping it along, professor.

[13:43] herman Bergson: Except the market for houses...:-)

[13:44] herman Bergson: Try to sell my house in RL....

[13:44] herman Bergson: Sign in the frondyard….

[13:44] herman Bergson: for a year now....

[13:44] herman Bergson: got roots...

[13:44] herman Bergson: not a soul is interested :-)

[13:44] herman Bergson: my crisis ^_^

[13:44] Debbie Dee (framdor): Oh well, you need a house ;)

[13:44] Merlin (merlin.saxondale): My next door neighbours house has been for sale for many months too

[13:45] .: Beertje :. (beertje.beaumont): you live in M.......no wonder..grins

[13:45] herman Bergson: frowns at Beertje.....

[13:45] herman Bergson: :-)

[13:45] .: Beertje :. (beertje.beaumont): ㋡

[13:45] Lizzy Pleides: we needed 5 years fr selling a house recently

[13:45] herman Bergson: As if H ...is somuch better...

[13:45] .: Beertje :. (beertje.beaumont): hey!

[13:45] Debbie Dee (framdor): Start a self help shelter for starving refugees.

[13:46] herman Bergson: Well..let's enjoy the cries at hand with open eyes and stay sharp on politics...

[13:46] herman Bergson: I thank you all for this wonderful year again...

[13:46] .: Beertje :. (beertje.beaumont): yes..i read more and more artikles in the newspaper

[13:46] Debbie Dee (framdor): So, do we have a class party now with cake, and tea ?

[13:46] herman Bergson: and I gonna take a nice long vacation....

[13:46] .: Beertje :. (beertje.beaumont): you deserved it Herman:)

[13:46] Qwark Allen: Hooooooo!!!!!!!   \O/     \O/     \O/

[13:46] Qwark Allen:                                |         |          |

[13:46] Qwark Allen:                              / \      / \      / \

[13:46] Guestboook van tipjar stand: Merlin Saxondale donated L$100. Thank you very much, it is much appreciated!

[13:47] Debbie Dee (framdor): lucky northerners - winter is biting down here...

[13:47] herman Bergson: Sorry ..bit dull indeed Debbie..no party....

[13:47] Debbie Dee (framdor): ;)

[13:47] Qwark Allen: AAHH!!!

[13:47] .: Beertje :. (beertje.beaumont): it's raining since febrauri Debbie...

[13:47] herman Bergson: Next lecture will be in the first week of September

[13:47] herman Bergson: Class dismissed ..... ㋡

[13:47] Bejiita Imako: been a lot of rain for sure

[13:47] Qwark Allen: have nice long vacations herman

[13:47] Annie Brightstar (anniebrightstar): Thank you Herman

[13:47] Debbie Dee (framdor): Oh, and i thought i had it bad - it is 12 C tonight

[13:47] Qwark Allen: hope to see you around

[13:47] Merlin (merlin.saxondale): Yes I will miss it

[13:48] herman Bergson: I'll enjoy it Qwark...really...

[13:48] Qwark Allen: good good

[13:48] .: Beertje :. (beertje.beaumont): last sunday it was 8c during the day...

[13:48] herman Bergson: I will be around dont worry

[13:48] Qwark Allen: nice

[13:48] Lizzy Pleides: enjoy the summer Herman, will you make a journey?

[13:48] Debbie Dee (framdor): ok. I wont complain about the weather again ;)

[13:48] Qwark Allen: at least for sundays partys :-)

[13:48] Gemma Allen (gemma.cleanslate): Yes-ah!

[13:48] Gemma Allen (gemma.cleanslate): going to the island again?????

[13:48] herman Bergson: Yes Lizzy...to an island to the north of the Netherlands :-)

[13:49] Gemma Allen (gemma.cleanslate): ah nice

[13:49] herman Bergson: Indeed Gemma :-)

[13:49] .: Beertje :. (beertje.beaumont): the most wonderfull part of the Netherlands:)

[13:49] Gemma Allen (gemma.cleanslate): take more pictures and do a viewer

[13:49] herman Bergson: True Beertje

[13:49] .: Beertje :. (beertje.beaumont): except H ... of course

[13:49] herman Bergson: of course Beertje ㋡

[13:49] .: Beertje :. (beertje.beaumont): ㋡ smiles

[13:50] .: Beertje :. (beertje.beaumont): have a wonderfull summer!!

[13:50] Gemma Allen (gemma.cleanslate): see yu soon

[13:50] Debbie Dee (framdor): Bye philosophical friends - see you after summer...

[13:50] herman Bergson: I'll be around

[13:51] .: Beertje :. (beertje.beaumont): I have to go..Goodnight and sweet dreams

[13:51] Gemma Allen (gemma.cleanslate): ok

[13:51] Debbie Dee (framdor): and have a great break. Thanks Prof ;)

[13:51] herman Bergson: There will be a new project Debbie..that is for sure

[13:51] Gemma Allen (gemma.cleanslate): Bye, Bye  ㋡ 

[13:51] Merlin (merlin.saxondale): I dont want to step on anybody

[13:51] Gemma Allen (gemma.cleanslate): ♥ Thank Youuuuuuuuuu!! ♥

[13:51] Gemma Allen (gemma.cleanslate): beertje

[13:51] Qwark Allen: see you all soon

411: The Utopia of theFree Market - Neoliberalism

"TNT acquisition by UPS cost thousands of jobs"

That was a headline in my newspaper of last Saturday.

Formerly I wouldn't have read the article, but nowI see the utopia at work.

The situation is thus: UPS delivers parcels in the Netherlands and Belgium. TNT does the same. UPS wants to acquire TNT, not to increase its capacity, but to take over the customers of TNT. Delivery of parcels will be done by the existing UPS organization.

This means that a few thousand jobs become redundant. It means that people loose their jobs, while one of the things that give meaning to life in our society is participation, having a job.

Here you see the market at work. Profit maximization and stockholders are the main goals of an enterprise. That it creates employment and in this sense has a social function is just an accidental value.

Like Adam Smith said. That the baker bakes a bread, that can feed you  is just an added value. The main interest of the baker is his own profit and income, his self-interest.

Here we may ask the question, whether it is justified that a company just for the sake of increasing profit is allowed to create a social disaster for thousands of families. What ethics applies here?

This is the result of privatization  of the postal services in the Netherlands and something unique is happening now. 

The Dutch Senate has started in investigation into the effects of privatization of a number of previously state enterprises, like postal services and the national railways, energy and telecommunications.

Privatization of state enterprises and public services  was from the late eighties seen by politics as THE answer to all problems.

State enterprises were heavy and slow, the public service was inefficient and not transparent. All  misery would end, if the market would get a say. 

The prices would decrease, increase of quality, and previous public services would become innovative and customer-friendly.

Non of this has become really true. Therefore an investigation by a committee of the Senate is more than justified.

All this could happen due to the 10 commandments of neoliberalism as formulated in the Washington Consensus.

The concept and name of the Washington Consensus were first presented in 1989 by John Williamson, an economist from the Institute for International Economics, an international economic think tank based in Washington, D.C.

The consensus as originally stated by Williamson included ten broad sets of relatively specific policy recommendations:

1.Fiscal policy discipline, with avoidance of large fiscal deficits relative to GDP; 

2. Redirection of public spending from subsidies ("especially indiscriminate subsidies") toward broad-based provision of key pro-growth, pro-poor services like primary education, primary health care and infrastructure investment;

3. Tax reform, broadening the tax base and adopting moderate marginal tax rates;

4. Interest rates that are market determined and positive (but moderate) in real terms;

5. Competitive exchange rates;

6. Trade liberalization: liberalization of imports, with particular emphasis on elimination of quantitative restrictions (licensing, etc.); any trade protection to be provided by low and relatively uniform tariffs;

7. Liberalization of inward foreign direct investment;

8. Privatization of state enterprises;

9. Deregulation: abolition of regulations that impede market entry or restrict competition, except for those justified on safety, environmental and consumer protection grounds, and prudential oversight of financial institutions;

10. Legal security for property rights.

These have been the guidelines of many governments of many countries in the past 30 years. I guess you recognize some of the themes favored by your political parties (e.g. 3, 8 and 9).

Since 2008 we know that these commandments and neoliberalism have failed, like the opposite, communism, failed. Maybe in the next lecture I can formulate some ideas for a post neo liberalist society.

The Discussion

[13:20] herman Bergson: There is no self regulating market

[13:21] herman Bergson: and there is no rationally choosing customer

[13:21] herman Bergson: That is a utopia....

[13:21] herman Bergson: Thank you....

[13:22] herman Bergson: Next thursday it will be the last lecture of the season and conclusion of this project

[13:22] Lizzy Pleides: Thank you Professor

[13:22] Femtasia Rexen: thank you

[13:22] Bejiita Imako: oki

[13:22] Bejiita Imako: ㋡

[13:22] Annie Brightstar (anniebrightstar): Thank you Herman

[13:22] Mistyowl Warrhol: ty

[13:23] CONNIE Eichel whispers: welcome thorberg...

[13:23] herman Bergson: My observation is that we have great trouble finding our way out of the present crisis....

[13:23] Bejiita Imako: seems so it just continues

[13:23] Merlin (merlin.saxondale): Does anyone know a revolutionary economist in Aus callled Steve something?

[13:23] herman Bergson: because nobody has realized that the basic ideas were utopian

[13:24] Bejiita Imako: the company owners want more and more without caring for their employees at all

[13:24] Bejiita Imako: like they're machines

[13:24] Bejiita Imako: really sad development

[13:24] CONNIE Eichel: yep

[13:24] Mistyowl Warrhol: I read an article comparing Big Business to the Mafia.. it is scary how much they are alike.

[13:24] herman Bergson: That is no longer true Bejiita…

[13:24] Merlin (merlin.saxondale): economist in Aus called Steve something? Anyone?????

[13:24] herman Bergson: No Merlin.....

[13:25] Merlin (merlin.saxondale): Oh ok

[13:25] Merlin (merlin.saxondale): He was very critical of the banks anyway

[13:25] herman Bergson: Steve Keen...

[13:25] Merlin (merlin.saxondale): could be

[13:25] Annie Brightstar (anniebrightstar): Herman we are celebrating 60 years of Queen Elizabeth in UK. As such television programs are showing how things were when she ascended to the throne in 1952. When you compare living conditions in 1952 and 2012 talk of Failure seems to be stretching it a bit.

[13:25] .: Beertje :. (beertje.beaumont): http://en.wikipedia.org/wiki/Steve_Keen

[13:25] Merlin (merlin.saxondale): Good point Annie

[13:26] Merlin (merlin.saxondale): I was there (just)

[13:26] Lizzy Pleides: Nobody knows a solution for the problems. On long term it will be the question if civilization can survive. the nature limits the growth and we have to prove if we are able to react fairly

[13:26] herman Bergson: In a material sense you are right Annie....

[13:26] herman Bergson: We have created material prosperity...

[13:26] Merlin (merlin.saxondale): Thanks Beertje

[13:26] .: Beertje :. (beertje.beaumont): yw:)

[13:27] Mistyowl Warrhol: I disagree, in 50s, ppl could farm for food, etc. Today, ppl dont know how to do that nor is there land on which to do it.

[13:27] herman Bergson: In the first thirty years after WWII by building the social Wlefare state...

[13:27] Merlin (merlin.saxondale): If its him, he was interviewed or radio this week

[13:27] Merlin (merlin.saxondale): Today or yesterday

[13:27] Linda Bartavelle: neoliberalism was not the dominant doctrine in the 50s

[13:27] herman Bergson: No....neoliberalism took over when prosperity was at its height....

[13:27] Annie Brightstar (anniebrightstar): The average livespan for a man in 1952 in England was 66 now it is 79 not bad for failure

[13:28] Annie Brightstar (anniebrightstar): sorry about spelling

[13:28] herman Bergson: When money could make money...

[13:28] herman Bergson: in the 70s and 80s

[13:28] Lizzy Pleides: we have to reduce our consumption, that is most important

[13:28] Merlin (merlin.saxondale): What Annie is saying is relevant

[13:28] CONNIE Eichel: i wish being older... hehe

[13:28] herman Bergson: Then we went for selfishness in the Randian way...

[13:28] herman Bergson: we didn't need the social solidarity anymore

[13:29] Bejiita Imako: today we have a what we call in sweden, wear and throw away society

[13:29] Lizzy Pleides: yes Bejiita

[13:29] Bejiita Imako: things break deliberately so we have to buy new and new all time

[13:29] Merlin (merlin.saxondale): We call it 'disposable'

[13:29] Bejiita Imako: stuff don't last long so the manufacturers can make miney

[13:29] Bejiita Imako: while the scrap heals grow

[13:29] Merlin (merlin.saxondale): is this a digression?

[13:29] Mistyowl Warrhol: true, in 50's, your watch breaks, you took it in to be repaired.. now, just toss is.

[13:29] .: Beertje :. (beertje.beaumont): they do that on purpose Bejiita

[13:29] herman Bergson: That is changing Bejiita.....

[13:30] Bejiita Imako: yes they do

[13:30] herman Bergson: This Earth is a globe with limited resources....

[13:30] Merlin (merlin.saxondale): I don't believe in that 'planned obsolescence' idea

[13:30] Lizzy Pleides: the industry created an artificial demand for their products

[13:30] herman Bergson: Unlimited growth of the economy as goal is an absurdity

[13:30] Bejiita Imako: before machines held virtually forever now no more then maybee some years

[13:30] Bejiita Imako: at least my tv works great'

[13:30] .: Beertje :. (beertje.beaumont): my monitor screen was build for 3 years..they told me..then it broke..I fixed it for 5 euro:)..

[13:30] Mistyowl Warrhol: in 50's ppl want enough to eat, today, they want more than their neighbor

[13:31] Bejiita Imako: but if things last then they instead market new stuff in a way that make people throw away fully working stuff to get a newer model

[13:31] Bejiita Imako: a total waste

[13:32] Annie Brightstar (anniebrightstar): But if everything lasted forever Bejiita what would the workforce do

[13:32] herman Bergson: I would advise….read your newspaper.....check for the signs that question what Bejiita says, that question the absolute  belief in the self regulating free market....

[13:32] Bejiita Imako: well maybe but the thing is that it goes out of control

[13:32] Bejiita Imako: we must have a balance

[13:32] Lauren Nostram is online.

[13:33] herman Bergson: Yes Bejiita....a balance....

[13:33] herman Bergson: a balance between what....good issue to think about

[13:33] Mistyowl Warrhol: The question is.. is it too late to find balance, even if we could get ppl to do it?

[13:33] Bejiita Imako: today its just buy new buy new buy new all time

[13:33] herman Bergson: It is never too late Misty.....

[13:34] Annie Brightstar (anniebrightstar): Bejiita have you ever seen the film (the man in the white coat" 1951?

[13:34] herman Bergson: Most economists thought that the Free Market really had it all....

[13:34] Mistyowl Warrhol: I hope what you say is true. but I see so much damage that can not be undone.

[13:34] Bejiita Imako: no but i recognize the title i think

[13:34] Bejiita Imako: sound familiar

[13:34] herman Bergson: so ..as if history had stopped and reached its endpoint....long live the free market...now everybody will get happy

[13:34] Annie Brightstar (anniebrightstar): A man makes a coat which he thinks will be a boon fo society doesn't need cleaning will last forever

[13:35] Mariella Diesel (mariella.deezul) is online.

[13:35] herman Bergson: Well that is not the case....

[13:35] Annie Brightstar (anniebrightstar): The unions and the business owners see it as a disaster

[13:35] herman Bergson: The financial crisis has awaken a lot of people....

[13:35] CONNIE Eichel: mayas were right, professor? hehe

[13:36] Linda Bartavelle: what you say sounds like what stalin said about communism in ussr in the 30s.. now we have communism, so happiness for all for ever

[13:36] herman Bergson: Greenspan was shocked by the observation that his idea of the free market was a real mistake,

[13:36] herman Bergson: That is different Linda....

[13:36] Bejiita Imako: good that he realized that

[13:36] Bejiita Imako: 'at least

[13:37] herman Bergson: Every utopian ideology is inclined to totalitairism...

[13:37] herman Bergson: there is always a group of people who dont believe th in the utopia....

[13:37] CONNIE Eichel: yes, believe in the utopia, or die...

[13:37] herman Bergson: so they have to be re-educated....

[13:37] Bejiita Imako: an utopia is always impossible

[13:37] Mistyowl Warrhol: maybe we all need to go back and live in caves for a while and readjust our ways of living LOL

[13:37] herman Bergson: Exactly CONNIE

[13:37] Bejiita Imako: its like building a perfect machine with no energy loss

[13:37] Bejiita Imako: impossible

[13:38] Linda Bartavelle: capitalism for the whole planet is not a utopia, it is reality.. but it doesn't bring happiness for all

[13:38] herman Bergson: The challenge for the future will be finding that balance

[13:38] herman Bergson: to get what Aristotle already called the good life...

[13:38] CONNIE Eichel: it is an utopia for owners, linda, at least

[13:39] herman Bergson: Capitalism in the sense of the belief in the free market indeed Linda

[13:39] herman Bergson: But we have to rethink our situation.....

[13:40] herman Bergson: our resources, redistribution of wealth...

[13:40] Bejiita Imako: yes

[13:40] herman Bergson: But that will be work for centuries...

[13:40] Bejiita Imako: it has spun out of control a bit now

[13:40] Lizzy Pleides: centuries are too long Herman, we don't have so much time

[13:40] herman Bergson: reality has taught us a lesson Bejiita....

[13:41] Mistyowl Warrhol: Maybe if ppl would use their own brains and look at a whole picture and not just the bits, one side of the news had feeds them.. but now I am being an optimist :-)

[13:41] herman Bergson: Part of the people go on..business as usual....hoping for th the next bonus

[13:41] herman Bergson: other are in doubt....

[13:41] herman Bergson: read your newspaper....watch newsshows....and you see it everywhere

[13:42] Bejiita Imako: yes, seen some examples now recently

[13:42] herman Bergson: Where it will lead to I don't know....

[13:42] herman Bergson: I'll think about it for next lecture ^_^

[13:42] Bejiita Imako: oki

[13:43] herman Bergson: So thank you all for your participation again....

[13:43] Bejiita Imako: ㋡

[13:43] herman Bergson: Class dismissed ㋡

[13:43] .: Beertje :. (beertje.beaumont): thank you Herman

[13:43] Bejiita Imako: interesting as usual :9

[13:43] Bejiita Imako: tnx Herman

[13:43] Femtasia Rexen: thank you Professor

[13:43] Gemma Allen (gemma.cleanslate) is offline.

[13:43] CONNIE Eichel: great class, i missed it :)

[13:43] Mistyowl Warrhol: TY.. much to think about :-)

[13:43] Bejiita Imako: yes

[13:44] herman Bergson: Thank you CONNIE

[13:44] Bejiita Imako: ok cu soon again bye

[13:44] Bejiita Imako: ㋡

[13:44] CONNIE Eichel: a pleasure :)